Head-and-Shoulders

A reversal pattern consisting of three price peaks (in the case of a head-and-shoulders top) where the middle peak (the “head”) is higher than the peaks on either side of it (the “shoulders”).  A head-and-shoulders bottom is the inverse of this pattern.

Head-and-shoulders patterns should only be considered potential reversal patterns when they occur after extending up or down trends.

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• How to Trade Head-and-Shoulders Above the Rest
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